networking & security opportunity · pdf filenetworking & security opportunity david...

Networking & Security Opportunity

David GoeckelerSVP/GM, Networking and Security Business

Networking and Security Business

Roland AcraData Center

Jonathan DavidsonService Provider

Routing

David UlevitchSecurity

David WardCTO / Chief Architect

Ravikrishna CherukuriSilicon / Optics / HW

DAVID GOECKELER

SVP/GM

Kip ComptonCloud Platform and Solutions

Liz CentoniComputing Systems

Anuj KapurStrategy

Ish LimkakengData Center

Scott HarrellEnterprise Networking

Todd NightingaleCisco Meraki

Yvette KanouffService Provider

Sachin GuptaEnterprise Networking

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Public

1. Enterprise NetworkingTodd Nightingale and Scott Harrell

2. Webscale

3. Data CenterRoland Acra

Agenda

4. Service ProviderYvette Kanouff

5. SecurityDavid Ulevitch

6. Q & A

Driving Networking Growth

Integrated ArchitectureBest of Breed Products

Powered by Intelligence

AUTOMATION

SECURITY

SILICON

OPTICS

SOFTWARE

ANALYTICS

Automation – by SegmentsSame value proposition solved in a different way

Integrated Fast IT

Simplicity

Cloud Managed

Highly Secure

Web Scale Economics

Automation

Scalability

Operational Efficiency

Commercial Global Enterprise Web ScaleSMB Service Providers


Integrated Fast IT

Simplicity

Cloud Managed

Highly Secure

Web Scale Economics

Automation

Scalability

Operational Efficiency

Cisco Meraki

Commercial Global Enterprise Web ScaleSMB Service Providers


Commercial Global EnterpriseSMB Web Scale

Web Scale

Economics

Service Providers

I N T E N T- B AS E D N E T W O R K I N G

Effective Security Requires the Network

Contain Threats Automated Remediation

Segmentation

Software Defined Access

automates containment

of threats

Defend network interior

Network analytics

Lower time to

remediation

Find Threats

Analytics Driving Increased Network RelevanceLeveraging the value of our network data

Portfolio breadth and depth — a valuable

source of data

Innovation vector woven into every business we have

Continued advances in data science will

unlock value

Ability to solve high value use cases

(assurance, security)

Cisco Meraki

Todd NightingaleSVP/GM, Cisco Meraki

Simplifying powerful technology

to free passionate people to focus on their mission

and reach groups previously left in the darkness.

Technology that simply works

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Public 12Presentation ID

Simplicity Value Proposition

Simplicity value proposition driving

• Nimble operations, lean IT

• Lower TCO

• Mission-driven IT

Cloud is the delivery tool for simplicity

Meraki leading the Simple IT movement

• Over 140,000 unique customers

• Over 1 million active networks


Portfolio Journey

MR

Wireless

Systems Manager

Mobility Management

MS

Switching

MX

Security & Routing

MC

Communications

MV

Security Cameras


Meraki MV


• Cloud removes need for NVR/VMS


• Zero-touch deployments

• Remote management

• Granular access control

• Export/share clips directly from Dashboard

• Motion Search analytics tool


Platform Efficiency

0

2

4

6

8

10

12

14

16

Q1'15A Q2'15A Q3'15A Q4'15A Q1'16A Q2'16A Q3'16A Q4'16A Q1'17A Q2'17A Q3'17A Q4'17F

$GM/$R&DSpend

Meraki Google Facebook Cisco SFDC Juniper Arista

0

1

2

3

4

5

6


$GM/$R&DSpend

Google Facebook Cisco SFDC Juniper Arista

0

50

100

150

200

250


R&D Headcount

SW HW PM

Over $1B bookings with

fewer than 250 R&D

headcount

R&D Efficiency of 12x ($GM/$R&D)… outpaces Google,

Facebook, SFDC

Durable R&D Leveragehasn’t decreased since acquisition

(13x ago)


Bookings vs R&D Spend

Bookings R&D Spend


Meraki Platform in the Market

# of Products


Account Growth

100%

239%

303%

384%

0%

100%

200%

300%

400%

Initial Purchase 12 Months 18 Months 24 Months

Number of months after initial purchase date

Account purchases

(as % of initial

purchase)


Innovation Strategy

Innovate Selectively

IT Complexity Cloud Management


Meraki @ Cisco

Powerful IP PortfolioCampus SwitchingRF ExcellenceSourceFire AMPThreatGridOpenDNS UmbrellaAPIs / DNA Center

OperationsLocal DepotsComponent Pricing

Globalization

Channel Momentum

Simplifying powerful technology

to free passionate people to focus on their mission

and reach groups previously left in the darkness.

Technology that simply works


New Platforms: Catalyst 9000 Series

DNA Center

Encrypted Traffic Analytics

The Enterprise Networking Launch

Cisco unveils a new era

of intent-based networking

Moving to a recurring revenue

model in our core business

• Establish software innovation and monetization model

• Catalyst 9000 requires a subscription

• Potential to sell subscriptions on install base

• Platform effect – upsell / cross-sell GTM motion

http://ciscolive.com/Online

Enterprise Networking

Scott Harrell SVP of Product Marketing, Enterprise Networking


WLC UI IOS CLI IOS CLI

Meraki

Networking Enterprise Power User

ISR and ASR 1k Routers

Catalyst Switches

AironetWireless APs


Rebuilt and Unified for the Digital AgeThe power of IOS

Open

v

Programmable ModularFeature Rich

Powered by Intent. Informed by Context.

Intent-Based Network Infrastructure

DNA Center

AnalyticsPolicy Automation

I N T E N T C O N T E X T

S E C U R I T Y

L E A R N I N G

Automation Impact

One time provisioning across access, campus, and WAN

No IP Address Management

No ACL Management

No VLAN Management

No CLI

Powered by IntentDNA Center and Software Defined Access

Default Deny

IoT Virtual Network Employee Virtual Network

GROUP 3 GROUP 4 GROUP 3 GROUP 4

Deny

Automate Threat Response

Deny

Limit Lateral Movement of Threats

WirelessRouters Switches

Informed by ContextLeveraging analytics to transform network operations

INSIGHT

Analytics

NETWORK DATA PLATFORM

Assurance Apps

DATA

IT Operations Impact of New Approach

$14M

$5.4M

Current With Cisco DNA Center

OPEX

Reduce Network

Provisioning

67%

Improve Issue

Resolution

80%

Reduce Security

Breach Impact

48%

61%

Adoption Drives Greater Value

Simplicity for the Power User

ISR and ASR 1k Routers

Catalyst Switches

AironetWireless APs

Cisco DNA Center

Adoption Scale Maximizes Benefits

SecurityOpEx Savings Insights

Identify and Resolve Issues Faster

Extend Workflows Across Ecosystem

Respond in Machine Time

Cross Domain Integration

3rd Party IntegrationsDNA Center

Innovation-Led Growth, Changing the Business Model

Intent-Based Network Infrastructure

DNA-Center

AnalyticsPolicy Automation

Sold as a subscription on every network device

Transforming the Switching Business ModelDelivering more value at every price point with subscriptions

SDAReady

SDAReadyIP Services

IP Base

Platform

Hardware + LAN Base

Legacy Model

Starting with Catalyst 9k

*Note: Includes IOSXE features and advanced

DNA-C (SD-Access & assurance)

5 & 7yr DNA Advantage*

5 & 7yr DNA Essentials

3yr DNA Advantage*

3yr DNA Essentials

Subscription Model

Upsell the Installed BaseSD-Access brownfield architecture

ASR-1000-X

ASR-1000-HX

ISR 4430

ISR 4450

WIRELESSROUTINGSWITCHING

AIR-CT5520

AIR-CT8540

Wave 2 APs (1800, 2800,3800)

Wave 1 APs* (1700, 2700,3700)

Catalyst 9400

Catalyst 9300

Catalyst 9500

Catalyst 4500E Catalyst 6K Nexus 7700

Catalyst 3850 and 3650

AIR-CT3504

CSR 1000V

Viptela and the New Era of NetworkingAccelerating the transformation

Subscription-LedArchitecture Alignment

Webscale

Presentation ID

Webscale Dynamics

Presentation ID

The Market Our Investments Our Approach

Our Approach

Modularized

OS to enable

micro-releases

Model-driven

architectures

Programmability

at every layer

Silicon innovation /

breadth to drive

density and cost

3rd party

networking

SW to run on

our HW

Virtualized and

containerized

SW to run on

3rd party HW

Our Progress

Spine-Layer

insertions

Leaf footprint

with 3rd party

SW / Cisco HW

Top-of-Rack

footprint

2OF THE

Top 7

3OF THE

Top 7

2OF THE

Top 7

Data Center

Interconnect

insertions

Route Reflector

insertion

Routing platform /

software

insertions

4OF THE

Top 7

3OF THE

Top 7

2OF THE

Top 7

Data Center

Roland AcraSVP/GM Data Center Business

Every company must now express

its uniqueness with software

Developers Move at Market Speed …With or Without IT

80%Employees use

software not

cleared by IT

83%IT Staff admit to using

unsanctioned software

and services

8%Enterprises

understand impact

of Shadow IT

Study by Stratecast and Frost & Sullivan

http://www.mcafee.com/us/resources/reports/rp-six-trends-security.pdf

42%Data sovereignty remains an issue

58%Costs per transaction

have increased

43%Companies are

concerned about lock-in

It Will Be a Hybrid World

Source: Forbes Insights: When Clouds Connect-How Hybrid IT is Transforming Enterprises

Powering a Software First, Hybrid Cloud World

Infrastructure Automation

and Simplification

Developer

Enablement Tools

Cloud Portability and

Policy Management

Application Relevance in a Hybrid Cloud World

APM

AppDynamics

Business Insights and

Impact

App Portability

Cloud Center

Infrastructure Independence

IaaS or On-PremisePublic Cloud

ANALYTICS

ENFORCEMENT

AUTOMATION

Policy

Lifecycle

Private Cloud

On-Premise IT

Our Signature Data Center Architecture

The TriathleteHyperflex — Hyper-Convergence in a Snap

Analyze

Automate

SimplifyProtect

The Mechanic, The Driver, The PassengerACI and Open Fabric for Policy Automation

Analyze

Automate

SimplifyProtect

Developers

IT

VM VM VM

app

appweb

app

app

db

db

web

See Everything...Don’t Talk to Strangers!

• App dependency maps

• Inferred white list policy

• Policy enforcement

• Network and OS based

• Hybrid cloud delivery

Tetration — ML Based App Visibility, Compliance

Analyze

Automate

SimplifyProtect

db

1

proxy server 3

Nexus 9000 – Cloud Scale PlatformLine Rate Telemetry, Encryption, Segmentation at 100G

Richest Switching Portfolio • Built-in visibility, telemetry, security

• Cloud Scale ASICs or merchant Si

• Cloud-ready NX-OS tools and APIs

Nexus 9300

Nexus 9500

Nexus 9000 Cloud Scale

Innovations

• One-chip 6.4Tbps line rate routing

• Line rate flow capture and encryption

• Unified ports: 10/25GE, 8/16/32G FC

CloudScale | Nexus Foundation

The ASAP High Impact Cycle

• Automated infrastructure

• Expressed for developers

• Inferred and enforced policy

• Deliverable in hybrid clouds

• Open and programmable

Protect

Automate

Analyze

Simplify

Service Provider Leading the Digital Transformation

Yvette Kanouff

SVP/GM, Service Provider Business Unit

Financial Analyst Conference

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

The World Has Gone Mobile & Wi-Fi The SP Business Challenge

Internet Traffic Growth Is At the Edge

60% Metro Traffic growth - to 35%

15% Regional Traffic growth - to 23%

29% Cross Country Traffic decline - to 41%

Source: Cisco VNI and Industry Data

7X Mobile Data Traffic Growth 48.3 EB /mo

63 percent of IP traffic will be mobile/Wi-Fi

Smartphone traffic will exceed PC traffic (33 %

versus 25%)

.

Trends Driving Digital Transformation by 2021

Growth/decline of global internet traffic %

Year over Year

Broadband Growth

Costs

Revenue

Costs

© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential

Cisco Creates Value for SPs

How We HelpSpend

Operations OpEx

Truck Rolls

Power

Facilities

Customer Service

Infrastructure: Outside and Inside

Automation, self-healing

Focus on density – leveraging virtualization; MSDC solutions

Low power focus, new mechanical designs

Network intelligence to lower truck rolls, zero-touch deployment

Automation, self-healing

Outside and inside – virtualization, more throughput/density,

performance

Services: B2B

Services: B2C Video, service creation tools, orchestration, mobility

Enterprise products, e.g. Meraki, collaboration, security, IoT


Cisco’s SP Strategy

24%

SP

Xx%

ENT

Software

ValueAutomation

Silicon

Disruption

Grow

Enterprise


What Cisco Does For Service Providers

Automation

Enterprise

B to B

Mass-Scale

Networking

Applications

B to C


SP Routing

24%

SP

Xx%

ENT

CommercialEnterpriseService

Provider

Invest in maximizing performance of current silicon

Multi-Purpose

NCS 5500

Traditional SP

& Web Scale

Platform consolidation with disruptive next generation silicon

5 New Routing & Optical Insertions in Cloud Scale Customers in

Q3 FY17


Cisco Leading in SP IP Core Routing

Cisco

Competitor

Cisco NCS5500

8-slot

Cisco NCS5500

16-slot

NG Silicon

Density NCS5500 Competitor

Per Slot 36 x 100GE 30x100GE

System 57.6 Tbps 24 Tbps

Future

Density

Time

Not to scale

Source: Public Data

Recent Competitive Announcements

• 16 Slot Chassis @ 57.6Tbps – Ships 2H’17

• MACSEC support on Jericho+ Linecard

• MPLS and VXLAN with EVPN Signaling

Three “Catch Up” Launches

Shipping since Jan 2017

Supported since Q1 CY17

Already shipping

Cisco Status

• FP4 Silicon: 1.2Tbps Full Duplex targeted Q4’17

• 7950 System BW upgrade to 48T per chassis

• 7750 System BW upgrade to 60Tbps on fabric

• Telemetry Support/Deepfield Integration

Differentiated silicon roadmap

Shipping 57.6Tbps chassis BW since Jan ’17

Shipping 57.6Tbps chassis BW since Jan ’17

In Customer Trials now

• JunOS Node Slicing

• New Universal Chassis

• NorthStar Controller Support for SPRING

Supports Node Slicing since 2016

N/A

Lead industry in Segment Routing


SP Routing

24%

SP

Xx%

ENT

CommercialEnterpriseService

Provider

Invest in maximizing performance of current silicon

Multi-Purpose

NCS 5500

Traditional SP

& Web Scale

Platform consolidation with disruptive next generation silicon

5 New Routing & Optical Insertions in Cloud Scale Customers in

Q3 FY17


Disaggregation Business Model Value

Hardware

Legacy Model Value Attribution

Software

Hardware

Software Creates Stand-alone Value with new business models

Hardware Leads Industry Trends

Software

Hardware

Software

Hardware

Software

Hardware

Software

HardwareHardware

SoftwareSoftware


Cisco’s Optical PlatformsLeading in Data Center Interconnect

24%

SP

Xx%

ENT

250G Wavelengths Using Pluggable

Optics

Deployed in 3 out of 5

Top Cloud Scale Providers

Industry First 1 Tb per RU


Top SPs Use Cisco Automation

Multi-vendorWAN Automation

Virtual MS/NFV/vEPC

Data Center Automation

Cloud Interconnect


Automation: Making Data Actionable

Leadership in Moving Video to the Cloud

• 80+ deployments with 60+ customers

• 30+ active customer trials

• 40+ consumer devices supported, and growing

• 20+ partners on the Platform

• Deployed across Cable/Telco/OTT/DTH Operators, Broadcasters

• Across End-to-end platforms, Security, Video Processing & Distribution

Source: Cisco VSS

© 2017 Cisco and/or its affiliates. All rights reserved.

Shaw + Cisco Meraki

= greater foothold in SMB

Bundled WiFi and Security

Cisco Verizon

DNS Safeguard built on OpenDNS

Cisco + SP Driving Enterprise DigitizationSP Bundle Advantage

• Quick time-to-market

• Low upfront CAPEX

• Simplified operating model

• Managed Security Offering

• Cloud delivered security against

every circuit Verizon sells


Differentiated Competitive Advantage

Thank you

Security Update

Catalyst 9000 + Encrypted Traffic AnalyticsVisibility and malware detection without decryption

ETA algorithms analyze

multiple network data sources

Malware in Encrypted Traffic

No information

is decrypted

Security AND Privacy

High rate

of accuracy

Detection Accuracy


• Talos threat intelligence understands malware behaviors and characteristics

• Catalyst 9000 provides multiple sources of enhanced network context

• Machine learning identifies malware in encrypted traffic

How ETA Works

Google Search

Firefox self-repair

Bestafera Malware

Visual review of packet data


Security Business

David UlevitchSVP/GM, Security Business Group

Cisco Security Commitment

Customers’

Trusted

Advisor

Broad/

Deep

Portfolio

A Threat-

Centric

Approach Cognitive

Sourcefire ThreatGRID

Neohapsis OpenDNS

Portcullis Lancope

Cloudlock

Securely

Connect

Everything

to Make

Anything

Possible

5K

People

Strong

Managed

Security

Services

Security is

Cisco’s #1

Priority Billions

Invested #1

Preferred

Security

Vendor

Cisco Security Today – Leading Growth

50%+ Software

Revenue

ELA

Adoption Security Vendor

Consolidation

Advanced Threat / Endpoint

Cloud SecurityNetwork

Creating Three Billion-Dollar Franchises in Security

N G F W

I S E

S T E A L T H W A T C H

A N Y C O N N E C T

A M P

U M B R E L L A

C L O U D L O C K

E M A I L

When it Comes to Security, a Vendor Buffet is Not a Strategy

Source: Momentum Partners

Time

ResponseDetectionThreat

We leverage our architectural advantage to shorten the ‘time to detect,’ and tightly couple it with an ever shortening ‘time to respond.’

Cisco’s Architectural Advantage

Cloud

NGFW Umbrella Threat Grid

ESA AMP ISE

Third-Party Integrations

3Threat

AMP Cloud1

Threat Grid2

Endpoint

AMP for Endpoint

The Architectural AdvantageCommon scenario

Securing

Highly secure access to

the internet

Highly secure usage of

SaaS and IaaS

Security orchestration

and intelligence

Branch officesHQ Roaming / Mobile

Cloud Security Three Ways

1

1

2

2

3

3

Thank you

These presentation slides and related webcast may be deemed to contain forward-looking statements, which are subject to the safe harbor

provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements

regarding future events (such as statements regarding our growth and strategy) and the future financial performance of Cisco that involve risks and

uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events

or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer

markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information

technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer

demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in

certain priorities, including key growth areas, and in certain geographical locations, as well as maintaining leadership in routing, switching and

services; the timing of orders and manufacturing and customer lead times; changes in customer order patterns or customer mix; insufficient, excess

or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully

acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve

expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on

the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing

risks; product defects and returns; litigation involving patents, intellectual property, antitrust, shareholder and other matters, and governmental

investigations; our ability to achieve the benefits of the announced restructuring and possible changes in the size and timing of the related charges;

man-made problems such as cyber-attacks, data protection breaches, computer viruses or terrorism; natural catastrophic events; a pandemic or

epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities;

our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related

to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in

provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax

returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Form 10-K and Form 10-Q. The financial

information contained in these presentation slides and related webcast should be read in conjunction with the consolidated financial statements and

notes thereto included in Cisco’s most recent reports on Form 10-K and Form 10-Q, as each may be amended from time to time. Cisco’s results of

operations for prior periods are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in these presentation

slides and related webcast are based on limited information currently available to Cisco, which is subject to change. Although any such projections

and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain

points during the year. Such information speaks only as of the date of these presentation slides and related webcast.

Forward-looking Statements

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